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The image presents a problem related to **Breakeven Analysis for Multiple Products**. Let's break down the problem and approach the solution:

### Data from the problem:

**Product A:**
- Selling Price: P10
- Variable Cost: P7

**Product B:**
- Selling Price: P20
- Variable Cost: P12

**Product C:**
- Selling Price: P40
- Variable Cost: P16

- **Total Annual Fixed Costs:** P840,000
- **Sales Mix (% of peso sales):** 
  - Product A: 20%
  - Product B: 60%
  - Product C: 20%

### Required:
a. Compute break-even in sales pesos.  
b. Determine the number of units to be sold at the break-even point.

---

### Step-by-Step Solution:

#### 1. Contribution Margin (CM) per unit for each product:
The contribution margin is calculated as:
\[
\text{CM per unit} = \text{Selling Price} - \text{Variable Cost}
\]

- **Product A:**
  \[
  \text{CM for A} = 10 - 7 = 3
  \]
- **Product B:**
  \[
  \text{CM for B} = 20 - 12 = 8
  \]
- **Product C:**
  \[
  \text{CM for C} = 40 - 16 = 24
  \]

#### 2. Weighted Average Contribution Margin (WACM):
The weighted average contribution margin (WACM) is calculated based on the sales mix percentages.

\[
\text{WACM} = (\text{CM for A} \times 0.20) + (\text{CM for B} \times 0.60) + (\text{CM for C} \times 0.20)
\]

Substitute the values:
\[
\text{WACM} = (3 \times 0.20) + (8 \times 0.60) + (24 \times 0.20)
\]
\[
\text{WACM} = 0.6 + 4.8 + 4.8 = 10.2
\]

#### 3. Break-even in Sales Pesos:
The formula for break-even sales in pesos is:
\[
\text{Break-even Sales (pesos)} = \frac{\text{Total Fixed Costs}}{\text{WACM}}
\]

Substitute the values:
\[
\text{Break-even Sales} = \frac{840,000}{10.2} \approx 82,353 \, \text{pesos}
\]

#### 4. Number of Units to be Sold at Break-even Point:
To calculate the

The Company makes three products. The cost data for these three products is as follows:

- Product A: Selling price: P10, Variable cost: P7
- Product B: Selling price: P20, Variable cost: P12
- Product C: Selling price: P40, Variable cost: P16

Total annual fixed costs are P840,000. The sales mix is: Product A - 20%, Product B - 60%, Product C - 20%. Required:
a. Compute break-even in sales pesos.
b. Determine the number of units to be sold at the break-even point.

Learn how to calculate the break-even point for a company producing multiple products with varying sales mixes and costs. This problem covers break-even analysis, contribution margin, and weighted average calculations. Suitable for business or accounting students.

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